Gumi City, 800 Billion KRW Fund Management in First Half ... Achieves 3.9 Billion KRW Interest Income

Increase of 210 Billion KRW in Operating Fund Deposits, Interest Income Up by 3.73 Billion KRW

Active Fund Management Projects Year-End Interest Income of 9.2 Billion KRW, 13.9 Billion KRW Expected in 2024

Gumi City in Gyeongbuk achieved interest income of 3.9 billion KRW in the first half of this year through systematic management of public funds by analyzing the flow of revenue and expenditure. This is an increase of more than 3.7 billion KRW compared to the first half of the previous year, resulting from proactive fund management.

Gumi City Hall.

The scale of the city’s general account revenue and expenditure in the first half increased by about 25 billion KRW compared to last year, but the amount of funds deposited increased by 210 billion KRW. This increase in interest income can be seen not simply as a result of rising interest rates but as an achievement of efficient and systematic fund management.

The city recognized the need to secure stable financial resources due to decreased revenue caused by the economic downturn and increased expenditure from expanded welfare services. In response to recent interest rate trends, it judged this period as an opportune time to increase interest income and actively deposited time deposits from the second half of last year.

First, to ensure stable fund management, the city preemptively identified large-scale revenue and expenditure flows to secure maximum surplus funds and deposited these funds not in idle public deposit accounts but in time deposits with relatively higher yields.

Additionally, by coordinating with related departments to adjust expenditure timing and redeeming time deposits according to the expenditure schedule, the city minimized the balance in public deposit accounts and was able to maximize interest income by diversifying surplus funds into both long- and short-term investments.

Mayor Kim Jang-ho stated, “Securing available resources is more important than anything else amid uncertain fiscal conditions and increasing administrative demands. We will strive not only to secure national funds but also to manage the budget formed by citizens’ taxes and national subsidies well, so that it can be used as valuable resources for improving citizens’ welfare through fund management and increasing interest income.”

Based on deposits in the first half, interest income of about 9.2 billion KRW is expected by the end of the year and about 13.9 billion KRW by 2024. It is also anticipated that if additional surplus funds are deposited in the second half, interest income of 10 billion KRW within the year could be achieved.

This content was produced with the assistance of AI translation services.